Among the epicenters of the echo-bubble in the US housing 'recovery' is the San Francisco (and Bay Area) region. Between the weather, the frenzied IPOs of non-profitable tech firms, and free-money-funded hedge fund speculation, prices have surged - as DataQuick reports up 23.9% YoY in December! However, it seems perhaps the laws of economics may just have some relevance; as this price spike has had the following impact:
- *SAN FRANCISCO AREA HOME SALES FELL 12.7% IN DEC VS YR AGO
- *DATAQUICK: SAN FRANCISCO AREA DEC HOME SALES DROP TO 6-YR LOW
We are sure this is nothing to worry about. All we need is one marginal home to sell for more than the median $548,500 that San Francisco homes went for and we all feel the wealth effect...right?